The summer rally in US equities appears to have stopped, Wall Street worried about a more aggressive signal from the Federal Reserve and ahead of the annual meeting of global central banks,10-Year US Treasury YieldOn Monday (22), the dollar rose sharply, tech stocks became the focus of the kill, all S&P sectors were bloodied and all four major indices closed in obscurity.
that fingerClose black 2.55%,half shareprecipitated by almost 4%.Dow JonesIt closed down more than 640 points and the S&P closed down more than 2%, its worst one-day performance since June 16.
The annual meeting of global central banks in Jackson Hole, Wyoming, USA is set to take place this week. The outside world focuses on the speech given by Federal Reserve Chairman Powell on Friday (26) morning. Experts generally expect Powell to reiterate A aggressive stance against inflation with continued interest rate hikes.
The National Association for Business Economics (NABE) surveyed 198 economists from August 1-9, showing that 72% of economists expect the next US recession to begin in mid-2023. The Prime Minister is skeptical of a soft landing for the economy.
A decline in bond yields this summer fueled a recent rebound in US equities, but 10-Year US Treasury YieldAfter falling below 2.6% in early August, it rose above 3%, the highest since July 20. Nicholas Colas, co-founder of DataTrek Research, believes this volatile market sentiment was one of the reasons US stocks fell on Monday.
Energy stocks were the least negative on Monday, after Saudi Arabia said on Monday that futures prices did not reflect supply and demand fundamentals and that OPEC was ready to cut production, reporting that Brent cruderebounded from session lows. Furthermore, Gazprom last week announced the closure of Nord Stream 1 from August 31 to next month 2 to maintain the pipeline.
The global epidemic of novel coronary pneumonia (COVID-19) continues to spread. Before the deadline, data from Johns Hopkins University in the United States showed that the number of confirmed cases worldwide exceeded 596 million and the number of deaths exceeded 6.45 million. More than 12.4 billion doses of the vaccine have been administered in 184 countries around the world.
The performance of the four major US equity indices on Monday (22):
- US stocksDow JonesIt was down 643.13 points, or 1.91 percent, to 33,063.61.
- NasdaqThe index fell 323.64 points, or 2.55 percent, to close at 12,381.57.
- S&P 500 IndexIt was down 90.49 points, or 2.14 percent, to 4,137.99.
- Semiconductor of PhiladelphiaThe index fell 109.9 points, or 3.72 percent, to close at 2,843.4.
Focus the actions
The five kings of science and technology fell indefinitely. apple (AAPL-USA) fell by 2.30%; Half (META-US) fell by 2.92%; Alphabet (GOOGL-US) fell by 2.53%; Amazon (AMZN-USA) fell by 3.62%; Microsoft (MSFT-USA) fell by 2.94%.
Dow JonesThe constituent stocks were refrigerated. sales force (CRM-USA) fell by 3.69%; Disney (DIS-USA) fell by 3.5%; Home Depot (HD-USA) fell by 2.84%; American Express (AXP-USA) fell by 2.8%; 3M (MMM-USA) fell by 2.49%.
half shareNone of the constituent stocks were spared. microns (MU-USA) fell by 3.64%; AMD (AMD-USA) fell by 3.24%; NVIDIA (NVDA-USA) fell by 4.57%; Applied Materials (AMAT-USA) fell by 3.65%; Texas Instruments (TXN-USA) fell by 2.84%; Qualcomm (QCOM-USA) fell by 4.06%.
Only Chunghwa Telecom is Taiwan’s best ADR. TSMC ADR (TSM-USA) fell by 2.25%; ASE ADR (ASX-USA) down 3.46%; UMC ADR (UMC-USA) fell by 3.74%; Chunghwa Telecom ADR (CHT US) increased by 0.52%.
Company news
apple (AAPL-USA) fell 2.30 percent to $ 167.57 per share. Tianfeng International Securities analyst Ming-Chi Kuo predicted in a tweet on Monday that Apple’s upcoming new high-end 14- and 16-inch MacBook Pros will be powered by TSMC’s M2 chip made with 5nm technology and produced in series. in the fourth quarter of 2022.
AMC Entertainment Holdings (AMC-USA) fell 41.92% to $ 10.46 per share, as the world’s second largest cinema chain, Cineworld, could go bankrupt before its preferred stock goes public, frightening investors.
AMC’s preferred stock, which began trading on the New York Stock Exchange on Monday under the ticker “APE”, fell more than 13% to $ 6.00 per share.
The American leader of electric cars Tesla (TSLA-USA) fell 2.28% to $ 869.74 per share after Tesla CEO Elon Musk recently announced that the price of Tesla’s Fully Automatic Driving System (FSD) in North America will rise 25% to $ 15,000 , which will be released on September 5, effective date.
Ford (F-USA) plunged 5.04% to $ 15.08 per share. Ford on Monday confirmed it would cut around 3,000 jobs, mainly in North America and India, starting Sept. 1. To carry out the Ford + transformation plan, Ford is working to reduce costs, improve profits and prepare funds to enter the electric vehicle market and compete with electric vehicle leader Tesla.
Wall Street Analysis
At least four Fed officials issued aggressive comments last week, and the momentum of the US stock market rebound from the June bearish low quickly faded.
Evercore ISI analyst Julian Emanuel pointed out that several Fed officials have continued to reiterate recently that inflation will be contained at all costs. Powell is likely to continue to reiterate his staunchly hawkish rhetoric at the annual meeting of global central banks this week.
Jim Paulsen, investment strategist at Leuthold Group, believes the Fed’s current stance is still leaning towards overly restrictive policy, but that doesn’t mean they won’t turn into easing in a matter of months. History repeats itself over and over again and again.
Wall Street analysts have warned that the market should not over-interpret the summer rally. Analysts at Guggenheim, a financial investment services provider, believe US equities have rebounded sharply since the June Fed meeting, but the S&P is not managed to close beyond the 200-day moving average last week. According to the bear market’s past history, failing to break out of the 200-day moving average (4320 points) could predict that the decline in US equities will widen further in the coming months.
Morgan Stanley US equity strategist Mike Wilson expects the S&P to hit around 3,900 points by the end of this year and Bank of America analysts are even more pessimistic, predicting the S&P target will drop to 3,600 points by the end of the year. year .
The data is updated before the deadline, please refer to the actual quotation.
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